News - Regulation
Standard Life has won a legal appeal case brought by professional indemnity insurers over a £100m claim relating to losses arising from its Sterling fund.
In February, Standard Life won a judgement against 11 professional indemnity insurers.
London's Commercial Court ruled in favour of the life and pensions firm in relation to 2009 losses incurred on asset-backed securities held by the Standard Life Pension Sterling Fund. However, its insurers appealed against the ruling.
The appeal was today dismissed by the Court of Appeal and costs awarded to Standard Life.
The PI insurers have 28 days to seek leave to appeal to the Supreme Court. If leave to appeal is granted, Standard Life said it would be unlikely that the case would be heard before autumn 2013.
In January 2009 Standard Life made the decision to revalue the Sterling fund by 5% due to losses arising from its asset-backed securities holdings. The firm later injected £100m into the fund to compensate investors who lost out after advisers claimed its marketing material was untrue.
In January, 2010 Standard Life was fined £2.45m by the Financial Services Authority (FSA) for serious failures relating to the fund. Regulators said at the time the firm misled customers, as the product was originally sold as a ‘safe' cash fund, despite being linked to risky mortgage-backed securities (MBS).
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